Transport is among the areas that have experienced major changes and progress from the time man invented the wheel. Nowadays equipment can easily be delivered from one country to another without major delay (Hummels, 2007). Air transportation has become quite popular especially due to globalization and the international market where nations import and export good to boost their economy. With the growth of globalization and urban areas, it has become inevitable for the government to engage in the issues of modern shipping and air transportation to ensure that adequate measures are in place and that the activities that are conducted are illegal (Hummels, 2007). The focus of the analysis is to analyze the basic of modern shipping and transportation in regards to government involvement and the impact that both factors have on transportation.
Air transportation can be viewed to be a significant and a major industry based on its own framework in addition to allowing the provision of significant inputs when it comes to the political, social and economic aspects (Hummels, 2007). The need for the service provided by air transportation is associated with the desire of achieving particular objectives. A good example is its facilitation on the economic progress of a nation through tourism. Nonetheless, the demand has to be consistent in regards to the products and services that are provided by a country. Similarly to any input in a countrys economy, the absence of air transport may result in a standstill when it comes to adequate progress (Hummels, 2007). Furthermore, its immoderations in supply may be wasteful if not controlled. The same case applies to modern shipping whereby it contributes immensely to the economy whereby it allows the import and export of bulk goods such as vehicles, trains, large equipment and so forth (Hummels, 2007). The shipping of products also has to be consistent to ensure that a country fully benefits from its services. Also, the absence of the shipping may result in a slow growth of the economy in regards to the type and amount of a countrys imports and exports. Both air transportation and modern shipping extensively function in the context of a liberal market (Button, 2008).
The issue of government control comes into perspective in both local and international viewpoints. The local governments exercise control in terms of market entry, capacity and the fares used in the transportation. The governments ensure that no illegal substances get in or out of their countries through the frequent checkups (Button, 2008). By exercising control, it ensures that goods get in and out of the country through legal frameworks. It also engages in the collection of revenue through taxation such that the economy exhibits progress. However, it is important to note the international community may deter with government control. A Good example is the movement of the structure of the ASA to develop the Open Skies formulations such that services are provided freely among the associated countries i.e. the free international market among the countries in the EU (Button, 2008).
The impact of air transportation and modern shipping is that they have allowed the development of globalization. Globalization, in this case, refers to the restructuring of things such that they become global (Hummels, 2007). Through globalization, countries are able to learn from each other and hence import and export goods as per their needs and the needs of other countries. Modern shipping and air transportation have quickened the delivery of goods and services whereby people get the object of their desires without much delay (Hummels, 2007).
References
Button, k., (2008).The Impacts of Globalization on International Air Transport Activity. International Transport Forum, 1-13.
Hummels, D. (2007). Transportation costs and international trade in the second era of globalization. The Journal of Economic Perspectives, 21(3), 131-154.
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